April 23, 2012
Changes in the Global Economy since 1989End of the Cold War Acceleration of GlobalizationSeptember 11Rise of Neo-Liberalism
Washington ConsensusWelfare to WorkfareEmpowerment and personal responsibility replaced
protection of the vulnerable in rationale for government social programs
Financial Crisis of 2007-8Rise of China and India
The Euro CrisisWhat is the future of the
Euro Zone?Is austerity the answer to
current difficulties?Is Greece just the tip of the
iceberg?Sarkozy defeated in the first
round of French presidential elections in 2012, may not be reelected
G20 pledged $430 billion for IMF
Austerity protest in Italy
Attention turns to Spain
What comes next in the study of International Political Economy?How to deal with growing volatility of world
financial marketsHow to deal with the growing power of MNCs
and other transnational actorsHow to preserve and expand democratic
governance in the face of growing vulnerability of the system to major disruptions (military, economic, and terrorist)
How to reconcile the global interests in economic growth and environmental protection
A Renewed Focus on the LocalGlobalization makes it difficult for governments to
protect local communities and regions from its negative effects (especially under the influence of neo-liberal ideas)
In industrialized countries, environmental concerns are producing a greater focus on local issues
In developing countries, social safety nets were too thin to begin with; increasing the burden on local communities
Governments everywhere have been scaling back their efforts to help the vulnerable
What are the Issues that Both Sides Have to Address?Inability of either globalization or localism to
overcome forces that lead to domestic violence and war
Redefining the role of local and national governments, along with international governance institutions, so that the global economy can produce better results
Continued poverty in the Fourth World and elsewhere
Threats to the environment (e.g. climate change)
Recent ConcernsGlobal financial crisis may lead to a return to
greater regulation of financial marketsOther types of regulation may become more
acceptable also:Anti-trust and competition policiesEnvironmental regulations to deal with
global climate change and toxic wasteRelaxation of intellectual property enforcement
to deal with AIDS and other global pandemicsRenewed focus on education and infrastructure
Who is thinking about these things? Just a few names…
Saskia SassenSuzanne BergerWilliam EasterlyHernando de SotoJoseph Stiglitz
Saskia SassenProfessor, Sociology, University
of ChicagoBooks:
Cities in a world economy Deciphering the Global: Its
Spaces, Scales and SubjectsThe Global City: New York,
London, TokyoFocuses on emerging social
practices
video
Suzanne BergerProfessor, Political Science,
MITBooks:
National Diversity and Global Capitalism
How We CompeteFocuses on the political
economy of globalization and particularly on convergence
video
William EasterlyArgues against panaceasArgues for proper structuring of group
incentivesFormerly employed by World BankNow professor at NYUVideoBill Gates hated his books
Hernando de SotoPeruvian economistHead of Institute for
Liberty and Democracy in Lima
Focuses on the role of property rights
Book:The Mystery of Capital:
Why Capitalism Triumphs in the West and Fails Everywhere Else
video
Joseph StiglitzFormer chief economist of the World Bank
turned critic of the IMF after the Asia CrisisArgues the IMF mismanaged globalizationToo focused on inflation and fiscal rectitudeNeglected economic growth and employment
video